[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5049 Referred in Senate (RFS)]
<DOC>
114th CONGRESS
2d Session
H. R. 5049
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 15, 2016
Received; read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
AN ACT
To provide for improved management and oversight of major multi-user
research facilities funded by the National Science Foundation, to
ensure transparency and accountability of construction and management
costs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``NSF Major Research Facility Reform
Act of 2016''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Director.--The term ``Director'' means the Director of
the Foundation.
(2) Foundation.--The term ``Foundation'' means the National
Science Foundation established under section 2 of the National
Science Foundation Act of 1950 (42 U.S.C. 1861).
(3) Major multi-user research facility.--The term ``major
multi-user research facility'' means a science and engineering
infrastructure construction project that exceeds the lesser of
10 percent of a Directorate's annual budget or $100,000,000 in
total project cost that is funded in the major research
equipment and facilities construction account, or any successor
thereto.
SEC. 3. MANAGEMENT AND OVERSIGHT OF LARGE FACILITIES.
(a) Large Facilities Office.--The Director shall maintain a Large
Facilities Office. The functions of the Large Facilities Office shall
be to support the research directorates in the development,
implementation, and assessment of major multi-user research facilities,
including by--
(1) serving as the Foundation's primary resource for all
policy or process issues related to the development and
implementation of major multi-user research facilities;
(2) serving as a Foundation-wide resource on project
management, including providing expert assistance on
nonscientific and nontechnical aspects of project planning,
budgeting, implementation, management, and oversight;
(3) coordinating and collaborating with research
directorates to share best management practices and lessons
learned from prior projects; and
(4) assessing projects during preconstruction and
construction phases for cost and schedule risk.
(b) Oversight of Large Facilities.--The Director shall appoint a
senior agency official as head of the Large Facilities Office whose
responsibility is oversight of the development, construction, and
transfer to operations of major multi-user research facilities across
the Foundation.
(c) Policies for Large Facility Costs.--
(1) In general.--The Director shall ensure that the
Foundation's polices for developing and maintaining major
multi-user research facility construction costs are consistent
with the best practices described in the March 2009 Government
Accountability Office Report GAO-09-3SP, or any successor
report thereto, the Uniform Guidance in 2 CFR part 200, and the
Federal Acquisition Regulation as appropriate.
(2) Cost proposal analysis.--
(A) General requirement.--The Director shall ensure
that an external cost proposal analysis is conducted
for any major multi-user research facility.
(B) Resolution of issues found.--The Director, or a
senior agency official within the Office of the
Director designated by the Director, shall certify in
writing that all issues identified during the cost
analysis, including any findings of unjustified or
questionable cost items, are resolved before the
Foundation may execute a construction agreement with
respect to the project.
(C) Transmittal to congress.--The Director shall
transmit each certification made under subparagraph (B)
to the Committee on Science, Space, and Technology of
the House of Representatives, the Committee on
Commerce, Science, and Transportation of the Senate,
the Committee on Appropriations of the House of
Representatives, and the Committee on Appropriations of
the Senate.
(3) Incurred cost audits.--The Director shall ensure that
an incurred cost audit is conducted at least biennially on any
major multi-user research facility, in accordance with
Government Auditing Standards as established in Government
Accountability Office Report GAO-12-331G, or any successor
report thereto, with the first incurred cost audit to commence
no later than 12 months after execution of the construction
agreement.
(4) Contingencies.--
(A) In general.--Except as provided for in
subparagraph (C)(ii), the Foundation shall--
(i) provide oversight for contingency in
accordance with Cost Principles Uniform
Guidance in 2 CFR part 200.433, or any
successor thereto, and the Federal Acquisition
Regulation as appropriate, except as provided
in this paragraph; and
(ii) not make any award which provides for
contributions to a contingency reserve held or
managed by the awardee, as defined in 2 CFR
part 200.433(c).
(B) Updating policy manual.--The Foundation shall
update its Large Facilities Manual and any other
applicable guidance for contingencies on major multi-
user research facilities with regard to estimating,
monitoring, and accounting for contingency.
(C) Foundation requirements.--The policy updated
under subparagraph (B) shall require that the
Foundation--
(i) may only include contingency amounts in
an award in accordance with Cost Principles
Uniform Guidance in 2 CFR part 200.433, or any
successor thereto, and the Federal Acquisition
Regulation as appropriate; and
(ii) shall retain control over funds
budgeted for contingency, but may disburse
budgeted contingency funds incrementally to the
awardee to ensure project stability and
continuity.
(D) Awardee requirements.--The policy updated under
subparagraph (B) shall require that an awardee shall--
(i) provide verifiable documentation to
support any amounts proposed for contingencies;
and
(ii) support requests for the release of
contingency funds with evidence of a bona fide
need and that the amounts allocated to the
performance baseline are reasonable and
allowable.
(E) Current awardees.--The Foundation shall work
with awardees for whom awards with contingency
provisions have been made before the date of enactment
of this Act--
(i) to determine if any of their use of
contingency funds represents out-of-scope
changes for which Foundation's prior written
approval was not obtained; and
(ii) if out-of-scope changes are found, to
identify any financial action that may be
appropriate.
(5) Management fees.--
(A) Definition.--In this paragraph, the term
``management fee'' means a portion of an award made by
the Foundation for the purpose of covering ordinary and
legitimate business expenses necessary to maintain
operational stability which are not otherwise allowable
under Cost Principles Uniform Guidance in 2 CFR part
200, Subpart E, or any successor regulation thereto.
(B) Limitation.--The Foundation may provide a
management fee under an award only if the awardee
provides justification as to the need for such funds.
In such cases, the Foundation shall take into account
the awardee's overall financial circumstances when
determining the amount of the fee if justified.
(C) Financial information.--The Foundation shall
require award applicants to provide income and
financial information covering a period of no less than
3 prior years (or in the case of an entity established
less than 3 years prior to the entity's application
date, the period beginning on the date of establishment
and ending on the application date), including cash on
hand and net asset information, in support of a request
for management fees. The Foundation shall also require
awardees to report to the Foundation annually any
sources of non-Federal funds received in excess of
$50,000 during the award period.
(D) Expense reporting.--The Foundation shall
require awardees to track and report to the Foundation
annually all expenses reimbursed or otherwise paid for
with management fee funds, in accordance with Federal
accounting practices as established in Government
Accountability Office Report GAO-12-331G, or any
successor report thereto.
(E) Audits.--The Inspector General of the
Foundation may audit any Foundation award for
compliance with this paragraph.
(F) Prohibited uses.--An awardee may not use
management fees for--
(i) costs allowable under Cost Principles
Uniform Guidance in 2 CFR part 200, Subpart E,
or any successor regulation thereto;
(ii) alcoholic beverages;
(iii) tickets to concerts, sporting, or
other entertainment events;
(iv) vacation or other travel for
nonbusiness purposes;
(v) charitable contributions, except for a
charitable contribution of direct benefit to
the project or activity supported by the
management fee;
(vi) social or sporting club memberships;
(vii) meals or entertainment for
nonbusiness purposes;
(viii) luxury or personal items;
(ix) lobbying, as described in the Uniform
Guidance at 2 CFR 200.450; or
(x) any other purpose the Foundation
determines is inappropriate.
(G) Review.--The Foundation shall review management
fee usage for each Foundation award on at least an
annual basis for compliance with this paragraph and the
Foundation's Large Facilities Manual.
(6) Report.--Not later than 12 months after the date of
enactment of this Act, the Director shall submit to Congress a
report describing the Foundation's policies for developing and
managing major multi-user research facility construction costs,
including a description of any aspects of the policies that
diverge from the best practices recommended in Government
Accountability Office Report GAO-09-3SP, or any successor
report thereto, and the Uniform Guidance in 2 CFR part 200.
(7) Noncompliance.--The Director shall ensure that the
Foundation shall take the enforcement actions specified in 45
CFR 92.43 for noncompliance with this section.
SEC. 4. WHISTLEBLOWER EDUCATION.
(a) In General.--The Foundation shall be subject to section 4712 of
title 41, United States Code.
(b) Education and Training.--The Foundation shall provide education
and training for Foundation managers and staff on the requirements of
such section 4712, and provide information on such section to all
awardees, contractors, and employees of such awardees and contractors.
Passed the House of Representatives June 14, 2016.
Attest:
KAREN L. HAAS,
Clerk.